Blackley leases on domestic deteriorating in value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Blackley will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with undertake Blackley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Toby, came very close to the eighty-year mark with the lease on his two bedroom flat in Blackley. In buying his home two decades ago, the lease term was of no significance. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. Toby was able to extend his lease just in the nick of time in September. Toby and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had fallen to less than eighty years, the sum would have gone up by a minimum £950.
Last Christmas we were approach by Mr and Mrs. F Harris , who owned a garden flat in Blackley in July 2004. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical flats in Blackley with an extended lease were in the region of £242,600. The average amount of ground rent was £45 collected monthly. The lease concluded on 25 June 2093. Given that there were 67 years unexpired we calculated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including costs.
In 2011 we were contacted by Dr J Green who, having took over the lease of a purpose-built flat in Blackley in March 2012. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative premises in Blackley with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £55 collected annually. The lease expired in 2104. Taking into account 78 years left we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.